There is a European put option on a stock that expires in two months. The stock price is $98and the standard deviation of the stock returns is 61 percent. The option has a strike price of $110and the risk-free interest rate is an annual percentage rate of 6.4 percent.

What is the price of the put option today? Use a two-state model with one-month steps.

(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

There is an American put option on a stock that expires in two months. The stock price is $87and the standard deviation of the stock returns is 66 percent. The option has a strike price of $99and the risk-free interest rate is an annual percentage rate of 3 percent.

What is the price of the option? Use a two-state model with one-month steps

(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)